Siemens has a ‘good chance’ to win a ‘large part’ of Iraq’s $14 billion electricity infrastructure modernisation project deals, according to Iraqi premier Adel Abdel Mahdi. Abdel Mahdi announced this to the media after a meeting with German Chancellor Angela Merkel in Germany on Tuesday.

General Electric of the US is also bidding for these deals. Siemens Chief Executive Joe Kaeser and Iraq’s Electricity Minister Luay Al Khateeb signed an implementation agreement to kick off the execution of an agreement signed last year, Siemens said in a statement.

The roadmap includes the addition of new and highly efficient power generation capacity and the upgrade of existing plants. In addition, the roadmap envisages the expansion of transmission and distribution networks, Siemens added.

Based on the first phase of the roadmap, Iraq and Siemens agreed to contracts worth $785 million. The contract is for the construction of a 500 MW gas power plant and the upgrade of 40 gas turbines. Siemens will also install 34 transformers and 13 substations according to the contract.

Siemens is also expected to help with the financing of the Iraq electricity project. The projects could create tens of thousands of jobs and save billions in fuel costs while generating revenue.

The company plans to increase electricity production in Iraq by around 50 percent. Siemens aims to achieve this target by building new power plants, upgrading existing ones, and modernizing the grid.